Agenda - 09-04-2018 6-b - Authorization for the Chair to Sign a Letter Regarding Measures to Address the State Funding Shortfall in the Durham-Orange Light Rail Project

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Attachment 1 Draft Orange County Letter Jennifer Robinson, Chair, GoTriangle Board of Trustees Dear Jennifer: 3 I am writing in support of a corresponding letter written by Wendy Jacobs, Chair, Durham County Board of Commissioners to reiterate Orange County's support for the Durham - Orange Light Rail Transit Project and to convey to you the outcome of recent meetings to satisfy obligations as outlined in the Interlocal Agreement for Cost - Sharing for the Project. As you know, recent legislative action by the North Carolina General Assembly placed several limits on the Light Rail Project. According to the legislation, the Project remains eligible for a maximum of $190 million provided that all other non - federal funds for the project are committed by April 30, 2019, and that federal funds are committed no later than November 30, 2019. The Light Rail Project will be allowed to continue through the state's data - driven transportation funding prioritization process, which has tweice attributed high scores to the Project. However, the financial plan for the Project states that the State of North Carolina will contribute $247.6 million. Given the new $190 million maximum, there is now a shortfall in the financial plan of $57.6 million. The Cost - Sharing Agreement states that if state funds to be used for the D -O LRT Project are cancelled, terminated, withdrawn, do not materialize, or otherwise become unavailable for the D -O LRT Project, the Parties shall meet within fifteen business days to determine how to address the situation. On June 21st, I met with Wendy Jacobs, Chair of the Durham County Commissioners, Mark Marcoplos, Orange County Commissioner, and Ellen Reckhow, Durham County Commissioner, to satisfy this obligation, and we have subsequently met to continue discussion of how we will address the $57.6 million shortfall. According to the Cost - Sharing Agreement, Orange County has committed $149.5 million YOE to the Project from Dedicated Local Transit Revenues. Based on updated modeling with still conservative estimates, Durham County's dedicated transit revenues are robust and sufficient to cover the revenue shortfall, and both Durham and Orange County are in agreement on the plan to use these additional funds for this purpose. The Durham - Orange Light Rail Transit Project connects 3 major universities, 3 major hospitals, and 3 of the top ten employers in North Carolina, but it does more than that. It will lay the foundation for the next century of progress in our region and it will play an essential role in North Carolina's continued success. For these reasons, Orange County continues to support the Project. Sincerely, Mark Dorosin, Chair, Board of Orange County Commissioners